Savvy Saving Tips

There are lots of reasons to save. Maybe you want to buy a car, take a trip or even retire comfortably someday. To learn how to build your own secret stash, read on.

Setting your savings goals

Your "secret stash" doesn't need to be a big pile of money. It will more likely be built from dollars and cents that you can squeeze out of your spending without draining the fun out of your life. To reach your goal, try this:

Motivation: Without it you're not going to save a penny. Set realistic goals and write them down. Think long-term and get out of instant-gratification mode.
Remind Yourself: Keep a picture of your dream car posted on your bulletin board, or use that island vacation setting or retirement location as your computer wallpaper.
Plan: To develop your saving strategy, you might want to talk to someone who's experienced at saving, such as a parent, friend, teacher or banker.

Keeping track of your spending

It's a solid foundation for your savings plan, but a budget tells you only where your money should be going. If you want to find some spare change, you have to know where your money really is going.

Keep track of your receipts and expenditures every month. Whether you go out for an evening or get groceries, record what you've spent. At the end of the month take a look at where your money went and compare it to your budget to see if there are ways you could spend more efficiently.

Identifying spare change

The point is not to deprive yourself - it's OK to splurge now and then - but to be aware that small sacrifices can add up to big rewards over time.

Bring coffee to class instead of buying at the on-campus café.
Have a potluck instead of going to a restaurant.
Rent movies instead of going out on the town.

Every bit counts

Open a student bank account that offers discounts on transaction fees, and pay off your credit card every month to avoid interest charges.
Even if you can find only $5 a month, you're ahead of the game. It all counts and can really grow over time.

Developing a savings strategy is a feat in and of itself. Getting into the habit now means you'll have the skills to attain your financial goals at every stage of your life.

The information in this article is general only; it is not intended as specific investment, financial, accounting, legal or tax advice for any individual.